Rents For Residential Apartments Increase In Third Quarter

(MENAFN- The Peninsula) Joel Johnson | The Peninsula

Doha: The average asking rent for residential apartments indicates a significant upsurge in key neighborhoods across Qatar in Q3 2024, according to the online realty research platform - hapondo.

The prime apartment markets continued to observe a spike in rents from July to September, the online marketplace said.

As per the analysts at hapondo, the average rent for a one-bedroom listed in the West Bay area surged by over 7 percent to QR9,760 per month and by 4.5 percent to QR7,980 per month in Lusail's Marina District.

Meanwhile, in the two-bedroom apartment category, both West Bay and Marina have witnessed considerable increases in rental rates on a quarterly basis.

On the other hand, market experts note that the rents in The Pearl Qatar have remained steady at QR8,490 per month for one-bedroom apartments and QR11,500 per month for two-bedroom residencies.

In Fox Hills, the average rent for a bedroom apartment remains at QR5,800 per month level while the average two-bedroom rent plunged by almost 3 percent.

Although the rents during the second quarter of the year witnessed a decline in West Bay and Marina, the last quarter observed a better performance for one-bedroom apartment rents in prime markets and in select downtown areas including Al Sadd by 6.6 percent and the Old Airport by 3 percent.

However, numerous other areas such as Al Mansoura, Doha Jadeed, and Najma witnessed a decline as compared to its previous quarters. The average rents of residential buildings across these places dipped by roughly 8 percent.

In the meantime, the median rents in pivotal residential areas for medium-size villas of three to five bedrooms have shifted high. The Pearl's median rent grew from QR29,930 per month to QR30,900 per month.

Researchers highlight that the median rents of listed mid-size villa properties have spiked by an additional QR500 per month to QR1,000 per month in common residential areas like West Bay, Al Hilal, and Ain Khaled while rents remained stable in Al Mamoura, Old Airport, and Al Waab.

Abdullah Al Saleh, CEO of hapondo's parent company Sakan, stated“The rental market continues to be strong in Qatar, especially in the prime residential sector where gross rental yields range from 5% to 8% for prime apartments and 3 percent to 5 percent for prime villas.

“In hapondo, a significant portion of our users search for apartments in The Pearl and West Bay, and they look for villas in places such as Al Waab and West Bay Lagoon, signifying the market's interest in quality spaces and convenient living,” he further added.

Sources told The Peninsula that increasing demand for the residential real estate market and its growing population are the primary reasons for rental upsurge.

The latest data by the National Planning Council states that the population in Qatar increased from 2.8 million in June 2024 to 3.05 million individuals in August with over 48 percent of the population reported to be expatriates.

However, the Qatar Real Estate Price Index also rebounded back from a 2-year low performance in April during the third quarter of the year, the report said, adding that the index recovered from 202.46 points in April to 215.05 points in August, signifying a gradual recovery of selling prices across the country.

MENAFN22102024000063011010ID1108805207